TaxTMI 
TaxTMI 
2018 (12) TMI 1784
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....pper wire rod, copper wire etc, which they remove on payment of Central Excise duty. 2. Vide the impugned order-in-original, the Additional Director General, DGGST Intelligence, New Delhi have ordered confiscation of 300 MT of copper slag valued at Rs. 7,24,20,000/- with option to redeem on payment of fine of Rs. 1.90 crore. Further, order was passed to release the seized 40 MT of copper scrap valued at Rs. 1,70,00,000/-. Further, penalty was imposed amounting to Rs. 50 lakhs on the appellant Co. under Rule 25 of Central Excise Rules. Penalty was also imposed on the other appellants/ directors amounting to Rs. 10 lakhs each. However, proposed penalty on Shri Ravinder Singh, Incharge/ Supervisor of M/s Kopertek Metals Pvt. Limited and M/s M....
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....the premises of Mr. Amit Gupta resulted in recovery of various incriminating documents showing sale of goods in cash in market, besides recovery of cash aggregating to Rs. 1,05,00,000/-. Mr. Amit Gupta in his statement dated 06.12.2012 inter alia stated that for supplying invoices without actually supplying the goods, they received payments through RTGS, 98% of which was returned in cash, and 2% was deducted or retained. 6. Mr. Jagdish Malhotra, Director of KMPL in his statement dated 07.12.2012 inter alia stated that Mr. Rajiv Malhotra, Mr. Tarun Malhotra and Mrs. Vandana Malhotra were the other Directors; that KMPL were engaged in manufacturing of copper rod and copper wire; and that KMPL were manufacturing copper rod from copper scrap a....
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....in his statement dated 06.12.2012, inter alia stated that he was working with Malhotras who were Directors of KMPL and MCPL; that Mr. Jagdish Malhotra, Director of KMPL was the owner of the premises A-117, Tulsi Ram Bhawan, Najafgarh Road, Moti Nagar, Delhi; and that he was sorting copper scrap in the said premises with the help of workers. Mr. Ravinder Singh failed to produce any document for the purchase of 40 MT copper scrap found in the said premises. 9. Mr. Ravinder Singh in his statement dated 21.12.2012 inter alia stated that he joined MCPL in 2009 as peon; that Mr. Jagdish Malhotra, Mr. Rajiv Malhotra and Mr. Tarul Malhotra were the owners of MCPL; that they had another unit namely KMPL at Bhiwadi; and that Mr. Jagdish Malhotra alo....
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....KMPL have contravened the provision of Rule 10 and Rule 12 of the Central Excise Rules, 2002; and therefore the seized goods are liable to confiscation under Rule 25 of the Central Excise Rules, 2002 and KMPL are liable to penalty under the Rule ibid. 14. Accordingly, show cause notice was issued on the appellant company proposing the confiscation of 300 MT of copper slag and 40 MT of copper scrap with proposal to impose penalty on the appellant company and its Directors and another. The show cause notice was adjudicated on contest and the proposal in the show cause notice was confirmed as stated hereinabove by the impugned order-in-original. Being aggrieved, the appellants are in appeals. 15. Learned Counsel for the appellants urges that....
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....d thus copper rods are manufactured by way of continuous cast process in copper foil form. Further, the slag generated during the process of manufacture of copper rods normally contains 35% to 55% of copper. 'Copper slag' is not 'copper scrap' and is not marketable. There is nothing on record to suggest that copper slag is marketable or have ever been sold by the appellant. Reliance is placed on the ruling of Hon'ble Supreme court in Union of India vs. Indian Aluminium Co. Limited -1995 (77) ELT 268 (SC) where it has been held that ash, dross and skimmings, refuse ash, rubbish arising in the course of manufacture are different from waste and scrap, therefore, they are not 'goods' as defined in Section 2(d) of the Central Excise Act, 1944. ....